Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2023 | Oct. 23, 2023 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 0-20852 | |
Entity Registrant Name | ULTRALIFE CORPORATION | |
Entity Incorporation, State or Country Code | DE | |
Entity Address, Address Line One | 2000 Technology Parkway | |
Entity Address, City or Town | Newark | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 14513 | |
Entity Tax Identification Number | 16-1387013 | |
City Area Code | 315 | |
Local Phone Number | 332-7100 | |
Title of 12(b) Security | Common Stock, $0.10 par value per share | |
Trading Symbol | ULBI | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 16,340,113 | |
Entity Central Index Key | 0000875657 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
Consolidated Balance Sheets (Cu
Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash | $ 9,301 | $ 5,713 |
Trade accounts receivable, net of allowance for expected credit losses of $XX and $303, respectively | 27,189 | 27,779 |
Inventories, net | 46,634 | 41,192 |
Prepaid expenses and other current assets | 6,429 | 4,304 |
Total current assets | 89,553 | 78,988 |
Property, plant and equipment, net | 21,166 | 21,716 |
Goodwill | 37,357 | 37,428 |
Other intangible assets, net | 15,270 | 15,921 |
Deferred income taxes, net | 10,728 | 12,069 |
Other noncurrent assets | 2,035 | 2,308 |
Total assets | 176,109 | 168,430 |
Current liabilities: | ||
Accounts payable | 13,470 | 16,074 |
Current portion of long-term debt | 2,000 | 2,000 |
Accrued compensation and related benefits | 2,467 | 2,890 |
Accrued expenses and other current liabilities | 8,449 | 7,949 |
Total current liabilities | 26,386 | 28,913 |
Long-term debt | 24,108 | 19,310 |
Deferred income taxes | 1,825 | 1,917 |
Other noncurrent liabilities | 2,032 | 1,887 |
Total liabilities | 54,351 | 52,027 |
Commitments and Contingencies | ||
Shareholders’ equity: | ||
Preferred stock – par value $.10 per share; authorized 1,000,000 shares; none issued | 0 | 0 |
Common stock – par value $.10 per share; authorized 40,000,000 shares; issued – 20,746,546 shares at September 30, 2023 and 20,570,710 shares at December 31, 2022; outstanding – 16,311,194 shares at September 30, 2023 and 16,135,358 shares at December 31, 2022 | 2,075 | 2,057 |
Capital in excess of par value | 188,852 | 187,405 |
Accumulated deficit | (43,627) | (47,951) |
Accumulated other comprehensive loss | (4,176) | (3,750) |
Treasury stock - at cost; 4,435,352 shares at September 30, 2023 and 4,435,352 shares at December 31, 2022 | (21,484) | (21,484) |
Total Ultralife Corporation equity | 121,640 | 116,277 |
Non-controlling interest | 118 | 126 |
Total shareholders’ equity | 121,758 | 116,403 |
Total liabilities and shareholders’ equity | $ 176,109 | $ 168,430 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Trade accounts receivable, allowance for doubtful accounts | $ 287 | $ 303 |
Preferred stock, par value (in dollars per share) | $ 0.10 | $ 0.10 |
Preferred Stock, Shares Authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred Stock, Shares Issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.10 | $ 0.10 |
Common Stock, Shares Authorized (in shares) | 40,000,000 | 40,000,000 |
Common stock, shares issued (in shares) | 20,746,546 | 20,570,710 |
Common stock, shares outstanding (in shares) | 16,311,194 | 16,135,358 |
Treasury Stock, Common, Shares (in shares) | 4,435,352 | 4,435,352 |
Consolidated Statements of Inco
Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) ( Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Revenues | $ 39,488 | $ 33,234 | $ 114,096 | $ 95,733 |
Cost of products sold | 29,714 | 26,519 | 86,298 | 74,414 |
Gross profit | 9,774 | 6,715 | 27,798 | 21,319 |
Operating expenses: | ||||
Research and development | 1,869 | 1,896 | 5,679 | 5,425 |
Selling, general and administrative | 5,770 | 5,405 | 16,293 | 15,982 |
Total operating expenses | 7,639 | 7,301 | 21,972 | 21,407 |
Operating income (loss) | 2,135 | (586) | 5,826 | (88) |
Other income (expense): | ||||
Interest and financing expense | (586) | (272) | (1,450) | (583) |
Miscellaneous income | 200 | 526 | 1,628 | 605 |
Total other (expense) income | (386) | 254 | 178 | 22 |
Income (loss) before income taxes | 1,749 | (332) | 6,004 | (66) |
Income tax provision (benefit) | 446 | (90) | 1,688 | (171) |
Net income (loss) | 1,303 | (242) | 4,316 | 105 |
Net loss attributable to non-controlling interest | (27) | (3) | (8) | 0 |
Net income (loss) attributable to Ultralife Corporation | 1,330 | (239) | 4,324 | 105 |
Other comprehensive loss: | ||||
Foreign currency translation adjustments | (330) | (1,691) | (426) | (3,189) |
Comprehensive income (loss) attributable to Ultralife Corporation | $ 1,000 | $ (1,930) | $ 3,898 | $ (3,084) |
Net income (loss) per share attributable to Ultralife common stockholders – basic (in dollars per share) | $ 0.21 | $ 0.03 | $ 0.19 | $ 0.02 |
Net income (loss) per share attributable to Ultralife common stockholders – diluted (in dollars per share) | $ 0.21 | $ 0.03 | $ 0.19 | $ 0.02 |
Weighted average shares outstanding – basic (in shares) | 16,238 | 16,133 | 16,172 | 16,122 |
Potential common shares (in shares) | 65 | 0 | 2 | 22 |
Weighted average shares outstanding - diluted (in shares) | 16,303 | 16,133 | 16,174 | 16,144 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
OPERATING ACTIVITIES: | ||
Net income | $ 4,316 | $ 105 |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | ||
Depreciation | 2,282 | 2,450 |
Amortization of intangible assets | 663 | 969 |
Amortization of financing fees | 48 | 25 |
Stock-based compensation | 424 | 552 |
Deferred income taxes | 1,245 | (683) |
Changes in operating assets and liabilities: | ||
Accounts receivable | 565 | (7,433) |
Inventories | (5,626) | (8,714) |
Prepaid expenses and other assets | (1,972) | (1,004) |
Accounts payable and other liabilities | (2,448) | 9,906 |
Net cash used in operating activities | (503) | (3,827) |
INVESTING ACTIVITIES: | ||
Purchases of property, plant and equipment | (1,547) | (1,396) |
Net cash used in investing activities | (1,547) | (1,396) |
FINANCING ACTIVITIES: | ||
Borrowings on revolving credit facility | 6,250 | 3,350 |
Payments on term loan facility | (1,500) | (1,333) |
Proceeds from exercise of stock options | 1,041 | 116 |
Payment of debt issuance costs | 0 | (25) |
Tax withholdings on stock-based awards | 0 | (11) |
Net cash provided by financing activities | 5,791 | 2,097 |
Effect of exchange rate changes on cash | (153) | (236) |
INCREASE (DECREASE) IN CASH | 3,588 | (3,362) |
Cash, Beginning of period | 5,713 | 8,413 |
Cash, End of period | $ 9,301 | $ 5,051 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity (Unaudited) - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | AOCI Including Portion Attributable to Noncontrolling Interest [Member] | Retained Earnings [Member] | Treasury Stock, Common [Member] | Noncontrolling Interest [Member] | Total |
Balance (in shares) at Dec. 31, 2021 | 20,522,427 | ||||||
Balance at Dec. 31, 2021 | $ 2,052 | $ 186,518 | $ (1,653) | $ (47,832) | $ (21,469) | $ 127 | $ 117,743 |
Net income | 105 | 0 | 105 | ||||
Stock option exercises (in shares) | 39,119 | ||||||
Stock option exercises | $ 4 | 112 | (7) | 109 | |||
Stock-based compensation – stock options | 538 | 538 | |||||
Stock-based compensation – restricted stock | 14 | 14 | |||||
Vesting of restricted stock (in shares) | 6,664 | ||||||
Vesting of restricted stock | $ 1 | (1) | (4) | (4) | |||
Foreign currency translation adjustments adjustments | (3,189) | (3,189) | |||||
Balance (in shares) at Sep. 30, 2022 | 20,568,210 | ||||||
Balance at Sep. 30, 2022 | $ 2,057 | 187,181 | (4,842) | (47,727) | (21,480) | 127 | 115,316 |
Balance (in shares) at Jun. 30, 2022 | 20,567,460 | ||||||
Balance at Jun. 30, 2022 | $ 2,057 | 186,999 | (3,151) | (47,488) | (21,480) | 130 | 117,067 |
Net income | (239) | (3) | (242) | ||||
Stock option exercises (in shares) | 750 | ||||||
Stock option exercises | $ 0 | 3 | 0 | 3 | |||
Stock-based compensation – stock options | 176 | 176 | |||||
Stock-based compensation – restricted stock | 3 | 3 | |||||
Foreign currency translation adjustments adjustments | (1,691) | (1,691) | |||||
Balance (in shares) at Sep. 30, 2022 | 20,568,210 | ||||||
Balance at Sep. 30, 2022 | $ 2,057 | 187,181 | (4,842) | (47,727) | (21,480) | 127 | $ 115,316 |
Balance (in shares) at Dec. 31, 2022 | 20,570,710 | 16,135,358 | |||||
Balance at Dec. 31, 2022 | $ 2,057 | 187,405 | (3,750) | (47,951) | (21,484) | 126 | $ 116,403 |
Net income | 4,324 | (8) | $ 4,316 | ||||
Stock option exercises (in shares) | 175,836 | 204,891 | |||||
Stock option exercises | $ 18 | 1,023 | 0 | $ 1,041 | |||
Stock-based compensation – stock options | 421 | 421 | |||||
Stock-based compensation – restricted stock | 3 | 3 | |||||
Foreign currency translation adjustments adjustments | (426) | $ (426) | |||||
Balance (in shares) at Sep. 30, 2023 | 20,746,546 | 16,311,194 | |||||
Balance at Sep. 30, 2023 | $ 2,075 | 188,852 | (4,176) | (43,627) | (21,484) | 118 | $ 121,758 |
Balance (in shares) at Jun. 30, 2023 | 20,586,045 | ||||||
Balance at Jun. 30, 2023 | $ 2,059 | 187,758 | (3,846) | (44,957) | (21,484) | 145 | 119,675 |
Net income | 1,330 | (27) | 1,303 | ||||
Stock option exercises (in shares) | 160,501 | ||||||
Stock option exercises | $ 16 | 963 | 0 | 979 | |||
Stock-based compensation – stock options | 130 | 130 | |||||
Stock-based compensation – restricted stock | 1 | 1 | |||||
Foreign currency translation adjustments adjustments | (330) | $ (330) | |||||
Balance (in shares) at Sep. 30, 2023 | 20,746,546 | 16,311,194 | |||||
Balance at Sep. 30, 2023 | $ 2,075 | $ 188,852 | $ (4,176) | $ (43,627) | $ (21,484) | $ 118 | $ 121,758 |
Note 1 - Basis of Presentation
Note 1 - Basis of Presentation | 9 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Business Description and Accounting Policies [Text Block] | 1. BASIS OF PRESENTATION The accompanying unaudited consolidated financial statements of Ultralife Corporation and its subsidiaries (the “Company” or “Ultralife”) have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information and with the instructions to Rule 8-03 of Regulation S-X. Accordingly, they do not include all the information and notes for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals and adjustments) considered necessary for a fair presentation of the consolidated financial statements have been included. Results for interim periods should not be considered indicative of results to be expected for a full year. Reference should be made to the consolidated financial statements and related notes thereto contained in our Form 10-K for the year ended December 31, 2022. The December 31, 2022 consolidated balance sheet information referenced herein was derived from audited financial statements but does not include all disclosures required by GAAP. Certain items previously reported in specific financial statement captions have been reclassified to conform to the current presentation. Significant Accounting Policies During the quarter ended June 30, 2023, in consultation with third party experts, the Company completed an analysis to determine and verify its eligibility for the Employee Retention Credit (“ERC”), which is a refundable tax credit against certain employment taxes under Section 2301 of the Coronavirus Aid, Relief, and Economic Security Act of 2020 (“CARES Act”) and the American Rescue Plan of 2021, and filed the necessary amended payroll tax forms with the Internal Revenue Service to claim a refund for the credit. The ERC refund receivable of $1,544 is included in prepaid expenses and other current assets on our consolidated balance sheet as of September 30, 2023, and the benefit is recognized as other income on our consolidated statement of income for the nine-month period ended September 30, 2023. Recently Adopted Accounting Guidance In June 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326) – Measurement of Credit Losses on Financial Instruments”, which requires entities to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. This replaces the existing incurred loss model and is applicable to the measurement of credit losses on financial assets measured at amortized cost. This guidance was effective for the Company for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022. The adoption of this new accounting standard did not have a material impact on our consolidated financial statements. |
Note 2 - Debt
Note 2 - Debt | 9 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | 2. DEBT On December 13, 2021, Ultralife, Southwest Electronic Energy Corporation, a Texas corporation and wholly owned subsidiary of Ultralife (“SWE”), CLB, INC., a Texas corporation and wholly owned subsidiary of SWE (“CLB”), Ultralife Excell Holding Corp., a Delaware corporation and wholly owned subsidiary of Ultralife (“UEHC”), Ultralife Canada Holding Corp., a Delaware corporation and wholly owned subsidiary of UEHC (“UCHC”), and Excell Battery Corporation USA, a Texas corporation and wholly owned subsidiary of UEHC (“Excell USA”), as borrowers, entered into the Second Amendment Agreement with KeyBank National Association (“KeyBank” or the “Bank”), as lender and administrative agent, to amend the Credit and Security Agreement dated May 31, 2017 as amended by the First Amendment Agreement by and among Ultralife, SWE, CLB and KeyBank dated May 1, 2019 (the “Credit Agreement”). On November 28, 2022, Ultralife, SWE, CLB, UEHC, UCHC, Excell USA, and Excell Battery Canada ULC, a British Columbia unlimited liability corporation and wholly owned subsidiary of UCHC (“Excell Canada”), entered into that certain Third Amendment Agreement with KeyBank, to further amend the Credit Agreement to, among other things, facilitate the joinder of Excell Canada as a guarantor under the Credit Agreement and to replace the LIBOR benchmark thereunder with SOFR (the “Third Amendment Agreement”, and together with the Second Amendment Agreement and the Credit Agreement, the “Amended Credit Agreement”). The Amended Credit Agreement, among other things, provides for a 5-year, $10,000 senior secured term loan (the “Term Loan Facility”) and extends the term of the $30,000 senior secured revolving credit facility (the “Revolving Credit Facility”, and together with the Term Loan Facility, the “Amended Credit Facilities”) through May 30, 2025. Up to six months prior to May 30, 2025, the Revolving Credit Facility may be increased to $50,000 with the Bank’s concurrence. As of September 30, 2023, the Company had $6,667 outstanding principal on the Term Loan Facility, $2,000 of which is included in current portion of long-term debt on the balance sheet, and $19,580 outstanding on the Revolving Credit Facility. As of September 30, 2023, total unamortized debt issuance costs of $139, including placement, renewal and legal fees associated with the Amended Credit Agreement, are classified as a reduction of long-term debt on the balance sheet. Debt issuance costs are amortized to interest expense over the term of the Amended Credit Facilities. The remaining availability under the Revolving Credit Facility is subject to certain borrowing base limits based on trade receivables and inventories. The Company is required to repay the borrowings under the Term Loan Facility in equal consecutive monthly payments commencing on February 1, 2022, in arrears, together with applicable interest. All unpaid principal and accrued and unpaid interest with respect to the Term Loan Facility is due and payable in full on January 1, 2027. All unpaid principal and accrued and unpaid interest with respect to the Revolving Credit Facility is due and payable in full on May 30, 2025. The Company may voluntarily prepay principal amounts outstanding at any time subject to certain restrictions. In addition to the customary affirmative and negative covenants, the Company must maintain a Consolidated Senior Leverage Ratio, as defined in the Amended Credit Agreement, of equal to or less than 3.5 to 1.0 for the fiscal quarters ending December 31, 2022 and March 31, 2023, and equal to or less than 3.0 to 1.0 for the fiscal quarters ending June 30, 2023 and thereafter. The Company was in full compliance with its covenants under the Amended Credit Agreement as of September 30, 2023. Borrowings under the Amended Credit Facilities are secured by substantially all the assets of the Company and its subsidiaries. Upon the effectiveness of the Third Amendment Agreement, interest accrues on outstanding indebtedness under the Amended Credit Facilities at the Daily Simple SOFR Rate, plus an index spread adjustment of 0.10%, plus the applicable margin. The applicable margin ranges from 185 to 215 basis points and is determined based on the Company’s senior leverage ratio. The Company must pay a fee of 0.15% to 0.25% based on the average daily unused availability under the Revolving Credit Facility. Payments must be made by the Company to the extent borrowings exceed the maximum amount then permitted to be drawn on the Amended Credit Facilities and from the proceeds of certain transactions. Upon the occurrence of an event of default, the outstanding obligations may be accelerated, and the Bank will have other customary remedies including resort to the security interest the Company provided to the Bank. Future minimum principal repayment obligations on our Amended Credit Facilities as of September 30, 2023 are as follows: 2023 $ 500 2024 2,000 2025 21,580 2026 2,000 2027 167 Thereafter 0 Total $ 26,247 |
Note 3 - Earnings Per Share
Note 3 - Earnings Per Share | 9 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | 3. EARNINGS PER SHARE Basic earnings (loss) per share (“EPS”) is computed by dividing net income (loss) attributable to Ultralife by the weighted average shares outstanding during the period. Diluted EPS includes the dilutive effect of securities, if any, and is calculated using the treasury stock method. For the three-month period ended September 30, 2023, there were 677,029 outstanding stock options and 2,500 unvested restricted stock awards included in the calculation of diluted weighted average shares outstanding, as such securities were dilutive, resulting in 65,275 potential common shares included in the calculation of diluted EPS. There were 411,583 outstanding stock options for the three-month period ended September 30, 2023 not included in EPS as the effect would be anti-dilutive For the comparable three-month period ended September 30, 2022, there no were no no For the nine-month period ended September 30, 2023, there were 22,165 outstanding stock options and 2,500 unvested restricted stock awards included in the calculation of diluted weighted average shares outstanding, as such securities were dilutive, resulting in 2,441 potential common shares included in the calculation of diluted EPS. There were 1,066,447 outstanding stock options for the nine-month periods ended September 30, 2023 not included in EPS as the effect would be anti-dilutive. For the comparable nine-month period ended September 30, 2022, there were 128,665 outstanding stock options and 5,000 unvested restricted stock awards included in the calculation of diluted EPS, resulting in 22,203 potential common shares included in the calculation of diluted EPS. There were 1,073,411 outstanding stock options for the nine-month period ended September 30, 2022 not included in EPS as the effect would be anti-dilutive. |
Note 4 - Supplemental Balance S
Note 4 - Supplemental Balance Sheet Information | 9 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Supplemental Balance Sheet Disclosures [Text Block] | 4. SUPPLEMENTAL BALANCE SHEET INFORMATION Fair Value Measurements and Disclosures The fair value of financial instruments approximated their carrying values at September 30, 2023 and December 31, 2022. The fair value of cash, accounts receivable, accounts payable, accrued liabilities, and the current portion of long-term debt approximates carrying value due to the short-term nature of these instruments. Cash The composition of the Company’s cash was as follows: September 30, 2023 December 31, 2022 Cash $ 9,223 $ 5,634 Restricted cash 78 79 Total $ 9,301 $ 5,713 As of September 30, 2023 and December 31, 2022, restricted cash included $78 and $79, respectively, of euro-denominated deposits withheld by the Dutch tax authorities and third-party VAT representatives in connection with a previously utilized logistics arrangement in the Netherlands. Restricted cash is included as a component of the cash balance for purposes of the consolidated statements of cash flows. Inventories, Net Inventories are stated at the lower of cost or net realizable value, net of obsolescence reserves, with cost determined under the first-in, first-out (FIFO) method. The composition of inventories, net was: September 30, 2023 December 31, 2022 Raw materials $ 31,516 $ 29,200 Work in process 4,342 2,757 Finished goods 10,776 9,235 Total $ 46,634 $ 41,192 Property, Plant and Equipment, Net Major classes of property, plant and equipment consisted of the following: September 30, 2023 December 31, 2022 Land $ 1,273 $ 1,273 Buildings and leasehold improvements 15,934 15,572 Machinery and equipment 57,164 63,981 Furniture and fixtures 2,822 2,845 Computer hardware and software 7,807 7,744 Construction in process 1,709 1,245 86,709 92,660 Less: Accumulated depreciation (65,543 ) (70,944 ) Property, plant and equipment, net $ 21,166 $ 21,716 Depreciation expense for property, plant and equipment was as follows: Three-month period ended Nine-month period ended September 30, 2023 September 30, 2022 September 30, 2023 September 30, 2022 Depreciation expense $ 760 $ 815 $ 2,282 $ 2,450 Goodwill The following table summarizes the goodwill activity by segment for the nine-month period ended September 30, 2023. Battery & Energy Products Communications Systems Total Balance – December 31, 2022 $ 25,935 $ 11,493 $ 37,428 Effect of foreign currency translation (71 ) - (71 ) Balance – September 30, 2023 $ 25,864 $ 11,493 $ 37,357 Other Intangible Assets, Net The composition of other intangible assets was: at September 30, 2023 Cost Accumulated Amortization Net Customer relationships $ 12,989 $ 6,451 $ 6,538 Patents and technology 5,564 5,260 304 Trade names 4,632 607 4,025 Trademarks 3,399 - 3,399 Other 1,500 496 1,004 Total other intangible assets $ 28,084 $ 12,814 $ 15,270 at December 31, 2022 Cost Accumulated Amortization Net Customer relationships $ 12,970 $ 5,992 $ 6,978 Patents and technology 5,557 5,171 386 Trade names 4,629 522 4,107 Trademarks 3,404 - 3,404 Other 1,500 454 1,046 Total other intangible assets $ 28,060 $ 12,139 $ 15,921 The change in the cost of total intangible assets from December 31, 2022 to September 30, 2023 is the effect of foreign currency translations. Amortization expense for other intangible assets was as follows: Three-month period ended Nine-month period ended September 30, 2023 September 30, 2022 September 30, 2023 September 30, 2022 Amortization included in: Selling, general and administrative $ 203 $ 295 $ 591 $ 895 Research and development 24 23 72 74 Total amortization expense $ 227 $ 318 $ 663 $ 969 |
Note 5 - Stock-based Compensati
Note 5 - Stock-based Compensation | 9 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Shareholders' Equity and Share-Based Payments [Text Block] | 5. STOCK-BASED COMPENSATION We recorded non-cash stock compensation expense in each period as follows: Three-month period ended Nine-month period ended September 30, 2023 September 30, 2022 September 30, 2023 September 30, 2022 Stock options $ 130 $ 176 $ 421 $ 538 Restricted stock 1 3 3 14 Total $ 131 $ 179 $ 424 $ 552 We have stock options outstanding from various stock-based employee compensation plans for which we record compensation cost relating to share-based payment transactions in our financial statements. As of September 30, 2023, there was $314 of total unrecognized compensation cost related to outstanding stock options, which is expected to be recognized over a weighted average period of 0.9 years. The following table summarizes stock option activity for the nine-month period ended September 30, 2023: Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (years) Aggregate Intrinsic Value Outstanding at January 1, 2023 1,425,693 $ 6.72 Granted 12,500 $ 4.07 Exercised (204,891 ) $ 5.71 Forfeited or expired (144,690 ) $ 5.01 Outstanding at September 30, 2023 1,088,612 $ 7.11 3.54 $ 2,898 Vested and expected to vest at September 30, 2023 1,009,489 $ 7.20 3.37 $ 2,598 Exercisable at September 30, 2023 703,529 $ 7.79 2.36 $ 1,402 Cash received from stock option exercises under our stock-based compensation plans for the three-month periods ended September 30, 2023 and September 30, 2022 was $979 and $3, respectively. Cash received from stock option exercises under our stock-based compensation plans for the nine-month periods ended September 30, 2023 and September 30, 2022 was $1,041 and $116, respectively. Outstanding restricted shares vest in equal annual installments over three |
Note 6 - Income Taxes
Note 6 - Income Taxes | 9 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 6. INCOME TAXES Our effective tax rate for the nine-month periods ended September 30, 2023 and September 30, 2022 was 28.1% and 259.1%, respectively. The period-over-period change was primarily attributable to the geographic mix of our operating results and the larger impact of discrete adjustments in the prior year. As of December 31, 2022, we have domestic net operating loss (“NOL”) carryforwards of $40,952, which expire 2025 through 2035, and domestic tax credits of $2,600, which expire 2028 through 2042, available to reduce future taxable income. As of September 30, 2023, management has concluded it is more likely than not that these domestic NOL and credit carryforwards will be fully utilized. As of September 30, 2023, for certain past operations in the U.K., we continue to report a valuation allowance for NOL carryforwards of approximately $10,000, nearly all of which can be carried forward indefinitely. Utilization of the net operating losses may be limited due to the change in the past U.K. operation and cannot currently be used to reduce taxable income at our other U.K. subsidiary, Accutronics Ltd. There are no other deferred tax assets related to the past U.K. operations. As of September 30, 2023, we have not As of September 30, 2023, the Company maintains its assertion that all foreign earnings will be indefinitely reinvested in those operations, other than earnings generated in the U.K. There were no As a result of our operations, we file income tax returns in various jurisdictions including U.S. federal, U.S. state and foreign jurisdictions. We are routinely subject to examination by taxing authorities in these various jurisdictions. Our U.S. tax matters for 2019-2022 remain subject to IRS examination. Our U.S. tax matters for 2005 2005 2013 |
Note 7 - Operating Leases
Note 7 - Operating Leases | 9 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Lessee, Operating Leases [Text Block] | 7. OPERATING LEASES The Company has operating leases predominantly for operating facilities. As of September 30, 2023, the remaining lease terms on our operating leases range from approximately one (1) year to eight (8) years. Lease terms include renewal options reasonably certain of exercise. There is no transfer of title or option to purchase the leased assets upon expiration. There are no residual value guarantees or material restrictive covenants. The components of lease expense for the current and prior-year comparative periods were as follows: Three months ended Nine months ended September 30, 2023 September 30, 2022 September 30, 2023 September 30, 2022 Operating lease cost $ 252 $ 216 $ 732 $ 674 Variable lease cost 28 22 85 69 Total lease cost $ 280 238 $ 817 $ 743 Supplemental cash flow information related to leases was as follows: Nine-month period ended September 30, 2023 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows used in operating leases $ 762 $ 676 Right-of-use assets obtained in exchange for lease liabilities: $ 310 $ - Supplemental consolidated balance sheet information related to leases was as follows: Balance sheet classification September 30, 2023 December 31, 2022 Assets: Operating lease right-of-use asset Other noncurrent assets $ 1,914 $ 2,187 Liabilities: Current operating lease liability Accrued expenses and other current liabilities $ 793 $ 895 Operating lease liability, net of current portion Other noncurrent liabilities 1,087 1,307 Total operating lease liability $ 1,880 $ 2,202 Weighted-average remaining lease term (years) 4.5 4.7 Weighted-average discount rate 4.5 % 4.5 % Future minimum lease payments as of September 30, 2023 are as follows: Maturity of operating lease liabilities 2023 $ 258 2024 642 2025 306 2026 241 2027 217 Thereafter 426 Total lease payments 2,090 Less: Imputed interest (210 ) Present value of remaining lease payments $ 1,880 |
Note 8 - Commitments and Contin
Note 8 - Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | 8. COMMITMENTS AND CONTINGENCIES Purchase Commitments As of September 30, 2023, we have made commitments to purchase approximately $925 of production machinery and equipment. Product Warranties We estimate future warranty costs to be incurred for product failure rates, material usage and service costs in the development of our warranty obligations. Estimated future costs are based on actual past experience and are generally estimated as a percentage of sales over the warranty period. Changes in our product warranty liability during the first nine months of 2023 and 2022 were as follows: Nine-month period ended September 30, 2023 2022 Accrued warranty obligations – beginning $ 323 $ 133 Accruals for warranties issued 260 247 Settlements made (98 ) (94 ) Accrued warranty obligations – ending $ 485 $ 286 Contingencies and Legal Matters We are subject to legal proceedings and claims that arise from time to time in the normal course of business. We believe that the final disposition of any such matters will not have a material adverse effect on the Company’s financial position, results of operations or cash flows. However, recognizing that legal matters are subject to inherent uncertainties, there exists the possibility that ultimate resolution of these matters could have a material adverse impact on the Company’s financial position, results of operations or cash flows. We are not aware of any such situations at this time. |
Note 9 - Revenue Recognition
Note 9 - Revenue Recognition | 9 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Revenue from Contract with Customer [Text Block] | 9. REVENUE RECOGNITION Revenues are generated from the sale of products. Performance obligations are met and revenue is recognized upon transfer of control to the customer, which is generally upon shipment. When contract terms require transfer of control upon delivery at a customer’s location, revenue is recognized on the date of delivery. For products shipped under vendor-managed inventory arrangements, revenue is recognized and billed when the product is consumed by the customer, at which point control has transferred and there are no further obligations by the Company. Revenue is measured as the amount of consideration we expect to receive in exchange for shipped product. Sales, value-added and other taxes billed and collected from customers are excluded from revenue. Customers, including distributors, do not have a general right of return. Separately priced extended warranty contracts are offered on certain Communications Systems products for a duration of up to eight (8) years. Extended warranties are treated as separate performance obligations and recognized to revenue evenly over the term of the respective contract. Revenue not yet recognized on extended warranty contracts is recorded as deferred revenue on the consolidated balance sheet. As of September 30, 2023, there was deferred revenue on extended warranty contracts of $1,121, comprised of $193 expected to be recognized as revenue within one (1) year and classified as accrued expenses and other current liabilities on our consolidated balance sheet, and $928 expected to be recognized as revenue over the remaining duration of the respective contracts and classified as other noncurrent liabilities on our consolidated balance sheet. As of December 31, 2022, there was deferred revenue on extended warranty contracts of $682, comprised of $119 expected to be recognized as revenue within one (1) year and classified as accrued expenses and other current liabilities on our consolidated balance sheet, and $563 expected to be recognized as revenue over the remaining duration of the respective contracts and classified as other noncurrent liabilities on our consolidated balance sheet. As of September 30, 2023 and December 31, 2022, the Company had no other unsatisfied performance obligations for contracts with an original expected duration of greater than one year. Pursuant to Topic 606, we have applied the practical expedient with respect to disclosure of the deferral and future expected timing of revenue recognition for transaction price allocated to remaining performance obligations. |
Note 10 - Business Segment Info
Note 10 - Business Segment Information | 9 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | 10. BUSINESS SEGMENT INFORMATION We report our results in two Three-month period ended September 30, 2023: Battery & Energy Products Communications Systems Corporate Total Revenues $ 31,919 $ 7,569 $ - $ 39,488 Segment contribution 7,728 2,046 (7,639 ) 2,135 Other expense (386 ) (386 ) Income tax provision (446 ) (446 ) Non-controlling interest 27 27 Net income attributable to Ultralife $ 1,330 Three-month period ended September 30, 2022: Battery & Energy Products Communications Systems Corporate Total Revenues $ 28,583 $ 4,651 $ - $ 33,234 Segment contribution 5,345 1,370 (7,301 ) (586 ) Other income 254 254 Income tax benefit 90 90 Non-controlling interest 3 3 Net loss attributable to Ultralife $ (239 ) Nine-month period ended September 30, 2023: Battery & Energy Products Communications Systems Corporate Total Revenues $ 94,250 $ 19,846 $ - $ 114,096 Segment contribution 21,783 6,015 (21,972 ) 5,826 Other income 178 178 Income tax provision (1,688 ) (1,688 ) Non-controlling interest 8 8 Net income attributable to Ultralife $ 4,324 Nine-month period ended September 30, 2022: Battery & Energy Products Communications Systems Corporate Total Revenues $ 87,873 $ 7,860 $ - $ 95,733 Segment contribution 19,217 2,102 (21,407 ) (88 ) Other income 22 22 Income tax benefit 171 171 Non-controlling interest - - Net income attributable to Ultralife $ 105 The following tables disaggregate our business segment revenues by major source and geography. Commercial and Government/Defense Revenue Information: Three-month period ended September 30, 2023: Total Revenue Commercial Government/ Defense Battery & Energy Products $ 31,919 $ 24,150 $ 7,769 Communications Systems 7,569 - 7,569 Total $ 39,488 $ 24,150 $ 15,338 61 % 39 % Three-month period ended September 30, 2022: Total Revenue Commercial Government/ Defense Battery & Energy Products $ 28,583 $ 22,878 $ 5,705 Communications Systems 4,651 - 4,651 Total $ 33,234 $ 22,878 $ 10,356 69 % 31 % Nine-month period ended September 30, 2023: Total Revenue Commercial Government/ Defense Battery & Energy Products $ 94,250 $ 73,319 $ 20,931 Communications Systems 19,846 - 19,846 Total $ 114,096 $ 73,319 $ 40,777 64 % 36 % Nine-month period ended September 30, 2022: Total Revenue Commercial Government/ Defense Battery & Energy Products $ 87,873 $ 70,154 $ 17,719 Communications Systems 7,860 - 7,860 Total $ 95,733 $ 70,154 $ 25,579 73 % 27 % U.S. and Non-U.S. Revenue Information 1 : Three-month period ended September 30, 2023: Total Revenue United States Non-United States Battery & Energy Products $ 31,919 $ 15,926 $ 15,993 Communications Systems 7,569 4,348 3,221 Total $ 39,488 $ 20,274 $ 19,214 51 % 49 % Three-month period ended September 30, 2022: Total Revenue United States Non-United States Battery & Energy Products $ 28,583 $ 13,433 $ 15,150 Communications Systems 4,651 3,547 1,104 Total $ 33,234 $ 16,980 $ 16,254 51 % 49 % Nine-month period ended September 30, 2023: Total Revenue United States Non-United States Battery & Energy Products $ 94,250 $ 47,088 $ 47,162 Communications Systems 19,846 11,170 8,676 Total $ 114,096 $ 58,258 $ 55,838 51 % 49 % Nine-month period ended September 30, 2022: Total Revenue United States Non-United States Battery & Energy Products $ 87,873 $ 41,303 $ 46,570 Communications Systems 7,860 6,609 1,251 Total $ 95,733 $ 47,912 $ 47,821 50 % 50 % 1 |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements, Policy [Policy Text Block] | Recently Adopted Accounting Guidance In June 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326) – Measurement of Credit Losses on Financial Instruments”, which requires entities to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. This replaces the existing incurred loss model and is applicable to the measurement of credit losses on financial assets measured at amortized cost. This guidance was effective for the Company for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022. The adoption of this new accounting standard did not have a material impact on our consolidated financial statements. |
Note 2 - Debt (Tables)
Note 2 - Debt (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Notes Tables | |
Schedule of Maturities of Long-Term Debt [Table Text Block] | 2023 $ 500 2024 2,000 2025 21,580 2026 2,000 2027 167 Thereafter 0 Total $ 26,247 |
Note 4 - Supplemental Balance_2
Note 4 - Supplemental Balance Sheet Information (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Notes Tables | |
Cash, Cash Equivalents and Investments [Table Text Block] | September 30, 2023 December 31, 2022 Cash $ 9,223 $ 5,634 Restricted cash 78 79 Total $ 9,301 $ 5,713 |
Schedule of Inventory, Current [Table Text Block] | September 30, 2023 December 31, 2022 Raw materials $ 31,516 $ 29,200 Work in process 4,342 2,757 Finished goods 10,776 9,235 Total $ 46,634 $ 41,192 |
Property, Plant and Equipment [Table Text Block] | September 30, 2023 December 31, 2022 Land $ 1,273 $ 1,273 Buildings and leasehold improvements 15,934 15,572 Machinery and equipment 57,164 63,981 Furniture and fixtures 2,822 2,845 Computer hardware and software 7,807 7,744 Construction in process 1,709 1,245 86,709 92,660 Less: Accumulated depreciation (65,543 ) (70,944 ) Property, plant and equipment, net $ 21,166 $ 21,716 Three-month period ended Nine-month period ended September 30, 2023 September 30, 2022 September 30, 2023 September 30, 2022 Depreciation expense $ 760 $ 815 $ 2,282 $ 2,450 |
Schedule of Goodwill [Table Text Block] | Battery & Energy Products Communications Systems Total Balance – December 31, 2022 $ 25,935 $ 11,493 $ 37,428 Effect of foreign currency translation (71 ) - (71 ) Balance – September 30, 2023 $ 25,864 $ 11,493 $ 37,357 |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | at September 30, 2023 Cost Accumulated Amortization Net Customer relationships $ 12,989 $ 6,451 $ 6,538 Patents and technology 5,564 5,260 304 Trade names 4,632 607 4,025 Trademarks 3,399 - 3,399 Other 1,500 496 1,004 Total other intangible assets $ 28,084 $ 12,814 $ 15,270 at December 31, 2022 Cost Accumulated Amortization Net Customer relationships $ 12,970 $ 5,992 $ 6,978 Patents and technology 5,557 5,171 386 Trade names 4,629 522 4,107 Trademarks 3,404 - 3,404 Other 1,500 454 1,046 Total other intangible assets $ 28,060 $ 12,139 $ 15,921 |
Finite-Lived Intangible Assets Amortization Expense [Table Text Block] | Three-month period ended Nine-month period ended September 30, 2023 September 30, 2022 September 30, 2023 September 30, 2022 Amortization included in: Selling, general and administrative $ 203 $ 295 $ 591 $ 895 Research and development 24 23 72 74 Total amortization expense $ 227 $ 318 $ 663 $ 969 |
Note 5 - Stock-based Compensa_2
Note 5 - Stock-based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Notes Tables | |
Disclosure of Share-Based Compensation Arrangements by Share-Based Payment Award [Table Text Block] | Three-month period ended Nine-month period ended September 30, 2023 September 30, 2022 September 30, 2023 September 30, 2022 Stock options $ 130 $ 176 $ 421 $ 538 Restricted stock 1 3 3 14 Total $ 131 $ 179 $ 424 $ 552 |
Share-Based Payment Arrangement, Option, Activity [Table Text Block] | Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (years) Aggregate Intrinsic Value Outstanding at January 1, 2023 1,425,693 $ 6.72 Granted 12,500 $ 4.07 Exercised (204,891 ) $ 5.71 Forfeited or expired (144,690 ) $ 5.01 Outstanding at September 30, 2023 1,088,612 $ 7.11 3.54 $ 2,898 Vested and expected to vest at September 30, 2023 1,009,489 $ 7.20 3.37 $ 2,598 Exercisable at September 30, 2023 703,529 $ 7.79 2.36 $ 1,402 |
Note 7 - Operating Leases (Tabl
Note 7 - Operating Leases (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Notes Tables | |
Lease, Cost [Table Text Block] | Three months ended Nine months ended September 30, 2023 September 30, 2022 September 30, 2023 September 30, 2022 Operating lease cost $ 252 $ 216 $ 732 $ 674 Variable lease cost 28 22 85 69 Total lease cost $ 280 238 $ 817 $ 743 |
Lessee, Lease, Cash Flow Information [Table Text Block] | Nine-month period ended September 30, 2023 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows used in operating leases $ 762 $ 676 Right-of-use assets obtained in exchange for lease liabilities: $ 310 $ - |
Lessee, Lease, Balance Sheet Information [Table Text Block] | Balance sheet classification September 30, 2023 December 31, 2022 Assets: Operating lease right-of-use asset Other noncurrent assets $ 1,914 $ 2,187 Liabilities: Current operating lease liability Accrued expenses and other current liabilities $ 793 $ 895 Operating lease liability, net of current portion Other noncurrent liabilities 1,087 1,307 Total operating lease liability $ 1,880 $ 2,202 Weighted-average remaining lease term (years) 4.5 4.7 Weighted-average discount rate 4.5 % 4.5 % |
Lessee, Operating Lease, Liability, to be Paid, Maturity [Table Text Block] | Maturity of operating lease liabilities 2023 $ 258 2024 642 2025 306 2026 241 2027 217 Thereafter 426 Total lease payments 2,090 Less: Imputed interest (210 ) Present value of remaining lease payments $ 1,880 |
Note 8 - Commitments and Cont_2
Note 8 - Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Notes Tables | |
Schedule of Product Warranty Liability [Table Text Block] | Nine-month period ended September 30, 2023 2022 Accrued warranty obligations – beginning $ 323 $ 133 Accruals for warranties issued 260 247 Settlements made (98 ) (94 ) Accrued warranty obligations – ending $ 485 $ 286 |
Note 10 - Business Segment In_2
Note 10 - Business Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Battery & Energy Products Communications Systems Corporate Total Revenues $ 31,919 $ 7,569 $ - $ 39,488 Segment contribution 7,728 2,046 (7,639 ) 2,135 Other expense (386 ) (386 ) Income tax provision (446 ) (446 ) Non-controlling interest 27 27 Net income attributable to Ultralife $ 1,330 Battery & Energy Products Communications Systems Corporate Total Revenues $ 28,583 $ 4,651 $ - $ 33,234 Segment contribution 5,345 1,370 (7,301 ) (586 ) Other income 254 254 Income tax benefit 90 90 Non-controlling interest 3 3 Net loss attributable to Ultralife $ (239 ) Battery & Energy Products Communications Systems Corporate Total Revenues $ 94,250 $ 19,846 $ - $ 114,096 Segment contribution 21,783 6,015 (21,972 ) 5,826 Other income 178 178 Income tax provision (1,688 ) (1,688 ) Non-controlling interest 8 8 Net income attributable to Ultralife $ 4,324 Battery & Energy Products Communications Systems Corporate Total Revenues $ 87,873 $ 7,860 $ - $ 95,733 Segment contribution 19,217 2,102 (21,407 ) (88 ) Other income 22 22 Income tax benefit 171 171 Non-controlling interest - - Net income attributable to Ultralife $ 105 |
Schedule of Revenues from External Customers by Business Segment Sector [Table Text Block] | Total Revenue Commercial Government/ Defense Battery & Energy Products $ 31,919 $ 24,150 $ 7,769 Communications Systems 7,569 - 7,569 Total $ 39,488 $ 24,150 $ 15,338 61 % 39 % Total Revenue Commercial Government/ Defense Battery & Energy Products $ 28,583 $ 22,878 $ 5,705 Communications Systems 4,651 - 4,651 Total $ 33,234 $ 22,878 $ 10,356 69 % 31 % Total Revenue Commercial Government/ Defense Battery & Energy Products $ 94,250 $ 73,319 $ 20,931 Communications Systems 19,846 - 19,846 Total $ 114,096 $ 73,319 $ 40,777 64 % 36 % Total Revenue Commercial Government/ Defense Battery & Energy Products $ 87,873 $ 70,154 $ 17,719 Communications Systems 7,860 - 7,860 Total $ 95,733 $ 70,154 $ 25,579 73 % 27 % Total Revenue United States Non-United States Battery & Energy Products $ 31,919 $ 15,926 $ 15,993 Communications Systems 7,569 4,348 3,221 Total $ 39,488 $ 20,274 $ 19,214 51 % 49 % Total Revenue United States Non-United States Battery & Energy Products $ 28,583 $ 13,433 $ 15,150 Communications Systems 4,651 3,547 1,104 Total $ 33,234 $ 16,980 $ 16,254 51 % 49 % Total Revenue United States Non-United States Battery & Energy Products $ 94,250 $ 47,088 $ 47,162 Communications Systems 19,846 11,170 8,676 Total $ 114,096 $ 58,258 $ 55,838 51 % 49 % Total Revenue United States Non-United States Battery & Energy Products $ 87,873 $ 41,303 $ 46,570 Communications Systems 7,860 6,609 1,251 Total $ 95,733 $ 47,912 $ 47,821 50 % 50 % |
Note 1 - Basis of Presentation
Note 1 - Basis of Presentation (Details Textual) $ in Thousands | Sep. 30, 2023 USD ($) |
Employee Retention Credit (ERC) [Member] | |
Government Assistance, Amount, Cumulative, Current | $ 1,544 |
Note 2 - Debt (Details Textual)
Note 2 - Debt (Details Textual) - Amended Credit Agreement [Member] $ in Thousands | Dec. 13, 2021 USD ($) | Sep. 30, 2023 USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
Debt Issuance Costs, Gross | $ 139 | |||
Term Loan Facility [Member] | Long-term Debt, Current Maturities [Member] | ||||
Secured Debt, Total | 2,000 | |||
Revolving Credit Facility [Member] | ||||
Secured Debt, Total | 6,667 | |||
Long-Term Line of Credit, Total | $ 19,580 | |||
Maximum Consolidated Senior Leverage Ratio | 3 | 3.5 | 3.5 | |
Revolving Credit Facility [Member] | Minimum [Member] | ||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.15% | |||
Revolving Credit Facility [Member] | Maximum [Member] | ||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.25% | |||
Revolving Credit Facility [Member] | Secured Overnight Financing Rate (SOFR) [Member] | ||||
Debt Instrument, Basis Spread on Variable Rate | 0.10% | |||
Revolving Credit Facility [Member] | Secured Overnight Financing Rate (SOFR) [Member] | Minimum [Member] | ||||
Debt Instrument, Basis Spread on Variable Rate | 1.85% | |||
Revolving Credit Facility [Member] | Secured Overnight Financing Rate (SOFR) [Member] | Maximum [Member] | ||||
Debt Instrument, Basis Spread on Variable Rate | 2.15% | |||
KeyBank [Member] | Term Loan Facility [Member] | ||||
Debt Instrument, Term | 5 years | |||
Debt Instrument, Face Amount | $ 10,000 | |||
KeyBank [Member] | Revolving Credit Facility [Member] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | 30,000 | |||
Line Of Credit Facility Maximum Borrowing Capacity Contingent On Bank Approval | $ 50,000 |
Note 2 - Debt - Schedule of lon
Note 2 - Debt - Schedule of long term debt maturities (Details) - Amended Credit Agreement [Member] - Revolving Credit Facility [Member] $ in Thousands | Sep. 30, 2023 USD ($) |
2023 | $ 500 |
2024 | 2,000 |
2025 | 21,580 |
2026 | 2,000 |
2027 | 167 |
Thereafter | 0 |
Total | $ 26,247 |
Note 3 - Earnings Per Share (De
Note 3 - Earnings Per Share (Details Textual) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Dilutive Securities Included in Computation of Earnings Per Share Amount Stock Option | 677,029 | 0 | 22,165 | 128,665 |
Dilutive Securities Included in Computation of Earnings Per Share Amount Restricted Stock | 2,500 | 2,500 | 5,000 | |
Incremental Common Shares Attributable to Dilutive Effect of Share-Based Payment Arrangements | 65,275 | 0 | 2,441 | 22,203 |
Share-Based Payment Arrangement, Option [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 411,583 | 1,202,076 | 1,066,447 | 1,073,411 |
Restricted Stock [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 5,000 |
Note 4 - Supplemental Balance_3
Note 4 - Supplemental Balance Sheet Information (Details Textual) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Restricted Cash and Cash Equivalents | $ 78 | $ 79 |
NETHERLANDS | ||
Restricted Cash and Cash Equivalents | $ 78 | $ 79 |
Note 4 - Supplemental Balance_4
Note 4 - Supplemental Balance Sheet Information - Cash and Restricted Cash (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Dec. 31, 2021 |
Cash | $ 9,223 | $ 5,634 | ||
Restricted cash | 78 | 79 | ||
Total | $ 9,301 | $ 5,713 | $ 5,051 | $ 8,413 |
Note 4 - Supplemental Balance_5
Note 4 - Supplemental Balance Sheet Information - Components of Inventory (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Raw materials | $ 31,516 | $ 29,200 |
Work in process | 4,342 | 2,757 |
Finished goods | 10,776 | 9,235 |
Total | $ 46,634 | $ 41,192 |
Note 4 - Supplemental Balance_6
Note 4 - Supplemental Balance Sheet Information - Components of Property, Plant and Equipment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Property, plant and equipment, gross | $ 86,709 | $ 86,709 | $ 92,660 | ||
Depreciation | 760 | $ 815 | 2,282 | $ 2,450 | |
Less: Accumulated depreciation | (65,543) | (65,543) | (70,944) | ||
Property, plant and equipment, net | 21,166 | 21,166 | 21,716 | ||
Land [Member] | |||||
Property, plant and equipment, gross | 1,273 | 1,273 | 1,273 | ||
Building and Building Improvements [Member] | |||||
Property, plant and equipment, gross | 15,934 | 15,934 | 15,572 | ||
Machinery and Equipment [Member] | |||||
Property, plant and equipment, gross | 57,164 | 57,164 | 63,981 | ||
Furniture and Fixtures [Member] | |||||
Property, plant and equipment, gross | 2,822 | 2,822 | 2,845 | ||
Computer Equipment [Member] | |||||
Property, plant and equipment, gross | 7,807 | 7,807 | 7,744 | ||
Construction in Progress [Member] | |||||
Property, plant and equipment, gross | $ 1,709 | $ 1,709 | $ 1,245 |
Note 4 - Supplemental Balance_7
Note 4 - Supplemental Balance Sheet Information - Summary of Goodwill (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Balance | $ 37,428 |
Effect of foreign currency translation | (71) |
Balance | 37,357 |
Battery & Energy Products Segment [Member] | |
Balance | 25,935 |
Effect of foreign currency translation | (71) |
Balance | 25,864 |
Communications Systems Segment [Member] | |
Balance | 11,493 |
Effect of foreign currency translation | 0 |
Balance | $ 11,493 |
Note 4 - Supplemental Balance_8
Note 4 - Supplemental Balance Sheet Information - Composition of Intangible Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Cost | $ 28,084 | $ 28,060 |
Accumulated Amortization | 12,814 | 12,139 |
Net | 15,270 | 15,921 |
Customer Relationships [Member] | ||
Cost | 12,989 | 12,970 |
Accumulated Amortization | 6,451 | 5,992 |
Net | 6,538 | 6,978 |
Patented Technology [Member] | ||
Cost | 5,564 | 5,557 |
Accumulated Amortization | 5,260 | 5,171 |
Net | 304 | 386 |
Trade Names [Member] | ||
Cost | 4,632 | 4,629 |
Accumulated Amortization | 607 | 522 |
Net | 4,025 | 4,107 |
Trademarks [Member] | ||
Cost | 3,399 | 3,404 |
Accumulated Amortization | 0 | 0 |
Net | 3,399 | 3,404 |
Other Intangible Assets [Member] | ||
Cost | 1,500 | 1,500 |
Accumulated Amortization | 496 | 454 |
Net | $ 1,004 | $ 1,046 |
Note 4 - Supplemental Balance_9
Note 4 - Supplemental Balance Sheet Information - Amortization of Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Amortization of intangible assets | $ 227 | $ 318 | $ 663 | $ 969 |
Research and Development Expense [Member] | ||||
Amortization of intangible assets | 203 | 295 | 591 | 895 |
Selling, General and Administrative Expenses [Member] | ||||
Amortization of intangible assets | $ 24 | $ 23 | $ 72 | $ 74 |
Note 5 - Stock-based Compensa_3
Note 5 - Stock-based Compensation (Details Textual) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Proceeds from Stock Options Exercised | $ 979 | $ 3 | $ 1,041 | $ 116 |
Share-Based Payment Arrangement, Option [Member] | ||||
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ 314 | $ 314 | ||
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 10 months 24 days | |||
Restricted Stock [Member] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 0 | 0 | ||
Restricted Stock [Member] | The 2014 Long-term Incentive Plan [Member] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Period (Year) | 3 years |
Note 5 - Stock-based Compensa_4
Note 5 - Stock-based Compensation - Non-cash Stock Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Stock-based compensation expense | $ 131 | $ 179 | $ 424 | $ 552 |
Share-Based Payment Arrangement, Option [Member] | ||||
Stock-based compensation expense | 130 | 176 | 421 | 538 |
Restricted Stock [Member] | ||||
Stock-based compensation expense | $ 1 | $ 3 | $ 3 | $ 14 |
Note 5 - Stock-based Compensa_5
Note 5 - Stock-based Compensation - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended |
Sep. 30, 2023 | |
Outstanding, shares (in shares) | 1,425,693 |
Outstanding, weighted average exercise price (in dollars per share) | $ 6.72 |
Granted, shares (in shares) | 12,500 |
Granted, weighted average exercise price (in dollars per share) | $ 4.07 |
Exercised, shares (in shares) | (204,891) |
Exercised, weighted average exercise price (in dollars per share) | $ 5.71 |
Forfeited or expired, shares (in shares) | (144,690) |
Forfeited or expired, weighted average exercise price (in dollars per share) | $ 5.01 |
Outstanding, shares (in shares) | 1,088,612 |
Outstanding, weighted average exercise price (in dollars per share) | $ 7.11 |
Outstanding, weighted average remaining contractual term (Year) | 3 years 6 months 14 days |
Outstanding, aggregate intrinsic value | $ 2,898 |
Vested and expected to vest, shares (in shares) | 1,009,489 |
Vested and expected, weighted average exercise price (in dollars per share) | $ 7.20 |
Vested and expected to vest, weighted average remaining contractual term (Year) | 3 years 4 months 13 days |
Vested and expected to vest, aggregate intrinsic value | $ 2,598 |
Exercisable, shares (in shares) | 703,529 |
Exercisable, weighted average exercise price (in dollars per share) | $ 7.79 |
Exercisable, weighted average remaining contractual term (Year) | 2 years 4 months 9 days |
Exercisable, aggregate intrinsic value | $ 1,402 |
Note 6 - Income Taxes (Details
Note 6 - Income Taxes (Details Textual) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Effective Income Tax Rate Reconciliation, Percent | 28.10% | 259.10% | |
Unrecognized Tax Benefits, Ending Balance | $ 0 | $ 0 | |
Domestic Tax Authority [Member] | Internal Revenue Service (IRS) [Member] | |||
Operating Loss Carryforwards | 40,952 | ||
Tax Credit Carryforward, Amount | $ 2,600 | ||
Open Tax Year | 2005 2006 2007 2011 2012 2013 2014 2015 2019 2020 2021 2022 | ||
Foreign Tax Authority [Member] | |||
Deferred Tax Assets, Valuation Allowance | $ 0 | ||
Open Tax Year | 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 | ||
Foreign Tax Authority [Member] | Her Majesty's Revenue and Customs (HMRC) [Member] | |||
Operating Loss Carryforwards | $ 10,000 | ||
State and Local Jurisdiction [Member] | |||
Open Tax Year | 2005 2006 2007 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 |
Note 7 - Operating Leases (Deta
Note 7 - Operating Leases (Details Textual) | Sep. 30, 2023 |
Minimum [Member] | |
Lessee, Operating Lease, Remaining Lease Term (Year) | 1 year |
Maximum [Member] | |
Lessee, Operating Lease, Remaining Lease Term (Year) | 8 years |
Note 7 - Operating Leases - Lea
Note 7 - Operating Leases - Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Operating lease cost | $ 252 | $ 216 | $ 732 | $ 674 |
Variable lease cost | 28 | 22 | 85 | 69 |
Total lease cost | $ 280 | $ 238 | $ 817 | $ 743 |
Note 7 - Operating Leases - Sup
Note 7 - Operating Leases - Supplement Cash Flow Information Related to Leases (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Operating cash flows from operating leases | $ 762 | $ 676 |
Right-of-use assets obtained in exchange for lease liabilities: | $ 310 | $ 0 |
Note 7 - Operating Leases - S_2
Note 7 - Operating Leases - Supplemental Balance Sheet Information Related to Leases (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Weighted-average remaining lease term (years) (Year) | 4 years 6 months | 4 years 8 months 12 days |
Weighted-average discount rate | 4.50% | 4.50% |
Other Noncurrent Assets [Member] | ||
Operating lease right-of-use asset | $ 1,914 | $ 2,187 |
Accrued Expenses and Other Current Liabilities [Member] | ||
Current operating lease liability | 793 | 895 |
Other Noncurrent Liabilities [Member] | ||
Operating lease liability, net of current portion | 1,087 | 1,307 |
Accrued Expenses and Other Current Liabilites and Other Noncurrent Liabilities [Member] | ||
Total operating lease liability | $ 1,880 | $ 2,202 |
Note 7 - Operating Leases - Fut
Note 7 - Operating Leases - Future Minimum Lease Payments (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
2023 | $ 258 | |
2024 | 642 | |
2025 | 306 | |
2026 | 241 | |
2027 | 217 | |
Thereafter | 426 | |
Total lease payments | 2,090 | |
Less: Imputed interest | (210) | |
Accrued Expenses and Other Current Liabilites and Other Noncurrent Liabilities [Member] | ||
Present value of remaining lease payments | $ 1,880 | $ 2,202 |
Note 8 - Commitments and Cont_3
Note 8 - Commitments and Contingencies (Details Textual) $ in Thousands | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Capital Addition Purchase Commitments [Member] | |
Long-Term Purchase Commitment, Amount | $ 925 |
Note 8 - Commitments and Cont_4
Note 8 - Commitments and Contingencies - Changes in Product Warranty Liability (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Accrued warranty obligations – beginning | $ 323 | $ 133 |
Accruals for warranties issued | 260 | 247 |
Settlements made | (98) | (94) |
Accrued warranty obligations – ending | $ 485 | $ 286 |
Note 9 - Revenue Recognition (D
Note 9 - Revenue Recognition (Details Textual) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Dec. 31, 2022 | |
Extended Product Warranty Accrual | $ 1,121 | $ 682 |
Accrued Expenses and Other Current Liabilities [Member] | ||
Extended Product Warranty Accrual, Current | 193 | 119 |
Other Noncurrent Liabilities [Member] | ||
Extended Product Warranty Accrual, Noncurrent | $ 928 | $ 563 |
Certain Communications Systems Products [Member] | Maximum [Member] | ||
Extended Product Warranty, Term | 8 years |
Note 10 - Business Segment In_3
Note 10 - Business Segment Information (Details Textual) | 9 Months Ended |
Sep. 30, 2023 | |
Number of Operating Segments | 2 |
Note 10 - Business Segment In_4
Note 10 - Business Segment Information - Segment Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Revenues | $ 39,488 | $ 33,234 | $ 114,096 | $ 95,733 |
Segment contribution | 2,135 | (586) | 5,826 | (88) |
Other income (expense) | (386) | 254 | 178 | 22 |
Income tax provision (benefit) | (446) | 90 | (1,688) | 171 |
Tax benefit | (446) | 90 | (1,688) | 171 |
Non-controlling interest | 27 | 3 | 8 | 0 |
Non-controlling interest | 27 | 3 | 8 | 0 |
Net loss attributable to Ultralife | 1,330 | (239) | 4,324 | 105 |
Net income attributable to Ultralife | 1,330 | (239) | 4,324 | 105 |
Battery & Energy Products Segment [Member] | ||||
Revenues | 31,919 | 28,583 | 94,250 | 87,873 |
Segment contribution | 7,728 | 5,345 | 21,783 | 19,217 |
Communications Systems Segment [Member] | ||||
Revenues | 7,569 | 4,651 | 19,846 | 7,860 |
Segment contribution | 2,046 | 1,370 | 6,015 | 2,102 |
Corporate Segment [Member] | ||||
Revenues | 0 | 0 | 0 | 0 |
Segment contribution | (7,639) | (7,301) | (21,972) | (21,407) |
Other income (expense) | (386) | 254 | 178 | 22 |
Income tax provision (benefit) | (446) | 90 | (1,688) | 171 |
Tax benefit | (446) | 90 | (1,688) | 171 |
Non-controlling interest | 27 | 3 | 8 | 0 |
Non-controlling interest | $ 27 | $ 3 | $ 8 | $ 0 |
Note 10 - Business Segment In_5
Note 10 - Business Segment Information - Revenue by Business Segment Sector (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Revenues | $ 39,488 | $ 33,234 | $ 114,096 | $ 95,733 |
UNITED STATES | ||||
Revenues | $ 20,274 | $ 16,980 | $ 58,258 | $ 47,912 |
Revenue, percentage | 51% | 51% | 51% | 50% |
Non-US [Member] | ||||
Revenues | $ 19,214 | $ 16,254 | $ 55,838 | $ 47,821 |
Revenue, percentage | 49% | 49% | 49% | 50% |
Commercial [Member] | ||||
Revenues | $ 24,150 | $ 22,878 | $ 73,319 | $ 70,154 |
Revenue, percentage | 61% | 69% | 64% | 73% |
Government & Defense [Member] | ||||
Revenues | $ 15,338 | $ 10,356 | $ 40,777 | $ 25,579 |
Revenue, percentage | 39% | 31% | 36% | 27% |
Battery & Energy Products Segment [Member] | ||||
Revenues | $ 31,919 | $ 28,583 | $ 94,250 | $ 87,873 |
Battery & Energy Products Segment [Member] | UNITED STATES | ||||
Revenues | 15,926 | 13,433 | 47,088 | 41,303 |
Battery & Energy Products Segment [Member] | Non-US [Member] | ||||
Revenues | 15,993 | 15,150 | 47,162 | 46,570 |
Battery & Energy Products Segment [Member] | Commercial [Member] | ||||
Revenues | 24,150 | 22,878 | 73,319 | 70,154 |
Battery & Energy Products Segment [Member] | Government & Defense [Member] | ||||
Revenues | 7,769 | 5,705 | 20,931 | 17,719 |
Communications Systems Segment [Member] | ||||
Revenues | 7,569 | 4,651 | 19,846 | 7,860 |
Communications Systems Segment [Member] | UNITED STATES | ||||
Revenues | 4,348 | 3,547 | 11,170 | 6,609 |
Communications Systems Segment [Member] | Non-US [Member] | ||||
Revenues | 3,221 | 1,104 | 8,676 | 1,251 |
Communications Systems Segment [Member] | Commercial [Member] | ||||
Revenues | 0 | 0 | 0 | 0 |
Communications Systems Segment [Member] | Government & Defense [Member] | ||||
Revenues | $ 7,569 | $ 4,651 | $ 19,846 | $ 7,860 |